| NEWS FRONT - Food is Fuel
by Richard Cairney A Federal Court of Appeal ruling that allowsa courier to claim the cost of food he eats during the day has couriersacross the country rejoicing, and saving their lunch receipts. Wayne Scott, a foot courier who works inToronto, won his battle against Revenue Canada last week. Scott arguedthat because couriers who drive vehicles can claim gasoline as a cost ofdoing work, foot couriers and bicycle couriers should be able to claimthe cost of food as fuel. Revenue Canada is reviewing the decisionwith the federal Justice department and has 60 days to file an appeal,says Revenue Canada spokesperson Colette Gentes-Hawn. She says a fundamental rule of income taxcomes into play in the case: "If you had to spend money to make money .. . you get a deduction for that," she said. And while couriers can claim gasoline,food is considered a personal expense and is not deductible, she adds. But auditors could see more couriers attemptingto claim such expenses. Bicycle couriers working in Edmonton's downtowncore were elated by news of Scott's courtroom victory. "I think it definitely makes sense," saidcourier Rob Laplante. "You consume calories at a much higher rate whenyou're on a bike all day . . . we work pretty hard and food is a fuel." Laplante says a courier can log as muchas 50 kilometres a day. He spends between $5 and $10 per day on food. "I kind of put a cap on it but you needto buy food - you can't carry along a lunch. You can't carry sandwicheswith you. Or bring a thermos. You show up with your backpack and that'sit." There are other expenses. At present, bicyclecouriers claim costs of bicycle equipment and repairs, as well as the priceof renting portable radios to receive assignments. But efforts to claimfood expenses have always been denied. "I think I did tell my accountant to tryit once and he just laughed at me," said Slotman, a courier who spendsup to $15 a day on food. Courier Chad Hemphill says he already takesfull advantage of deductions Revenue Canada allows. "I claim everything on my bike, everythingon me, everything from clothes to watches to sunglasses," he said, addingthat he'll start saving food receipts in case the appeal court's decisionstands. Michael Lyon, operations manager for A.C.S.Express Messenger Service, hopes the decision remains in force. "I have to agree with the judgment fromthe court as far as being able to write off a portion of your food if youare a bike courier or a walker in the downtown core. Because any of ourother drivers write off their fuel for their cars," he said. But he feels Revenue Canada auditors couldhave a hard time drawing a line in such cases. "I know (bicycle couriers) can write offtires, rims, things of that nature that are directly work related, butwhere do you draw the line if it's food?" Deanna Muise, a chartered accountant withthe firm of Kingston Ross Pasnak, agrees that line could be blurry. Withrickshaw drivers in Toronto already vowing they'll claim expenses, suchas food and footwear, the ruling could create a lot of confusion. But RevenueCanada has some options, she observes. The department could conduct a largeaudit sample of couriers to find average expenses, then publish guidelines,for example. Regardless of what Revenue Canada does,Muise feels the couriers have a strong argument. In the Toronto case, Scottargued he should be able to deduct the cost of one meal a day - an amounthe attributes directly to his work. The court did make the distinctionbetween couriers and other occupations that require strenuous physicalwork. "A courier burns fuels similar to burningfuel in a vehicle and (the court decision) doesn't say they can deductall their food and liquids - only their extra, over and above what theaverage person needs," she said. But it's important that couriers rememberthe decision has limited impact. "I don't think this is a really broad decisionthat will open this up to everyone and anyone," she said. "It will be restricted to (couriers). It'snot open season on deducting extra quantities of food." |
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